Monitoring Agency Report for the quarter ended March 31,2025
NITCO · price
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Awaiting price reaction for this filing.
Infomerics Valuation and Rating has filed the first monitoring agency report on Nitco Limited's Rs. 625.21 crore preferential issue (equity shares and convertible warrants). Of the Rs. 463.24 crore raised so far, Rs. 383.39 crore has been utilized with no deviation from stated objects. Key uses include Rs. 197.20 crore for debt repayment to Authum Investment, Rs. 45.26 crore to operational creditors, Rs. 46.17 crore for working capital, Rs. 86.27 crore for real estate acquisition, and Rs. 8.49 crore for general corporate purposes (salaries and vendor payments). The remaining Rs. 79.85 crore is parked in an HDFC Bank fixed deposit earning 7.50%. Notably, Rs. 82.76 crore of the real estate acquisition funds has been given as advances to promoter Vivek Talwar (Rs. 41.38 crore) and his spouse Anjali Talwar (Rs. 41.38 crore) for land purchases in Dhokavade and Bhodani.
The report shows disciplined fund utilization with no deviations, which is positive for governance. However, the large advances to the promoter and his spouse for land acquisition may raise related-party transaction concerns among retail investors. The 6-month completion window for all objects is still ongoing, and further updates on real estate acquisition progress will be key to watch.